Infrastructure initiatives announced in the Australian government’s 2014 budget will lead to a sharp improvement in infrastructure investment opportunities in the coming years, Industry Super Australia (ISA), an organisation representing superannuation funds, claimed.
This comes despite the Australian government's aim to nearly halve its budget deficit over the next year to A$30 billion (€21.0 billion; $28.1 billion) from A$50 billion as Prime Minister Tony Abbott pushes through spending cuts and tax increases.
“The $5 billion Asset Recycling Initiative is exactly the sort of policy that will kick start a new wave of infrastructure investment critical to Australia’s future,” said Matt Linden, ISA Director of Public Affairs.
“If governments judge it in the public interest, recycling infrastructure sale proceeds is a very effective way to catalyse essential new infrastructure that may not attract private sector investment in the first instance,” he said.
Linden said ISA is ready to invest an additional A$15 billion over the next five years if “appropriate deals” can be brought to the market as infrastructure assets have delivered exceptional returns to Industry Super Fund members while also investing back into Australia’s economic growth.
ISA manages collective projects on behalf of a number of industry super funds.